Health Care Financing Overview

The process of finding ways to pay for, distribute, and manage health resources.

A set of services that are considered essential for basic health.

Different ways to raise money for healthcare, like taxes, insurance premiums, or user fees.

Strategies for making the best use of available healthcare funds.

Improving how well the government runs its healthcare system.

Encouraging private companies and non-profit groups to contribute to healthcare.

Using insurance to spread healthcare costs.

Offering alternative ways to pay for healthcare in cities.

Public sources involve funding from government entities, such as taxes, national health services, and social health insurance programs.

Private sources refer to funding from individuals, private organizations, and employers, such as direct payments, private health insurance, and employer-sponsored plans.

General tax revenue involves collecting taxes from citizens and using those funds to finance healthcare services.

Deficit financing involves borrowing funds to cover immediate healthcare expenses with the promise of repayment later, incurring interest costs.

Direct government budgeting involves allocating specific funds from the government's budget to cover healthcare expenses.

National health services refer to government-run healthcare systems where services are provided directly to citizens.

Social health insurance programs involve mandatory contributions from individuals and employers to fund healthcare services for everyone.

Community financing involves pooling funds from a local community to pay for healthcare services within that area.

A financing method where a specific tax is designated for a specific purpose, like funding healthcare.

A financing method where individuals and employers contribute to a pool that is used to pay for benefits like healthcare, disability, or retirement.

It is a common practice to allocate tax income to different government sectors, including healthcare.

Social insurance contributions can be based on income other than wages, like crop value, to include workers outside of traditional employment.

Social insurance schemes can be managed directly by the government or outsourced to private companies.

The total financial contribution to social insurance is determined based on illness rates and benefit costs.

Individual contributions to social insurance are not based on expected risks but on income levels.

Donor funding for healthcare in developing countries often comes with different priorities than the recipient nation's most pressing needs.

Money spent directly by individuals on healthcare services, including fees, copayments, and out-of-pocket expenses.

A system where individuals pay premiums to an insurance institution, which then covers their healthcare expenses if they become ill or injured.

Social insurance programs, often funded through taxes or mandatory contributions, aim to provide basic health coverage for everyone, especially vulnerable populations. They may include pensions for disability or old age.

Private health insurance is purchased by individuals or groups and premiums are based on individual risk profiles, making it more expensive for higher-risk individuals.

These insurance plans often exclude pensions or benefits for disability or old age, focusing primarily on covering medical expenses.

Large employers often act as intermediaries for health insurance, offering plans to their employees and sometimes contributing a portion of the premium, making it a fringe benefit.

Lotteries and betting generate revenue that can be dedicated to health services, though it often relies on low-income individuals and has significant administrative costs.

A system where individuals pay directly for medical services, often with government involvement to regulate costs and ensure access.

Private health insurance companies operate in markets where demand is high. They offer coverage but can be expensive and may exclude high-risk individuals.

Employers directly finance health care for their employees, often through private medical services, onsite facilities, or equipment.

Employees may receive health benefits, but coverage for families is uncommon, as employers prioritize maintaining a productive workforce.

Employers may be required to provide basic health services, especially in industries like agriculture and mining.

Problems with employer-financed schemes include inconsistent quality of care, fragmentation of services, difficulty enforcing employer responsibilities, and reliance on the employer's success.

Individuals, organizations, or businesses contribute money or resources to support health care projects or services.

Foundations or religious organizations often channel charitable contributions to facilitate health care initiatives.